Submission of declaration form TSD

Declaration of income and social tax, unemployment insurance premiums and contributions to mandatory funded pension (form TSD) is submitted by the 10th day of the month following the month the payment was made. The declaration includes a summary form and annexes.

Possibilities for submitting the declaration

  • The declaration can be submitted in the e-MTA by either entering data manually or uploading as a file. 
    The declaration may be uploaded as an XML file, in a single file or separately by annexes. In addition, annexes 1 and 2 and the INF1 form can also be imported from a CSV file after the declaration has been formed. 

    submit declaration

  • The declaration can also be submitted via X-tee.

  • The form TSD can be submitted on paper only if there are up to five rows, i.e. five or less recipients to be declared.

Instructions for submitting the declaration

3. Non-resident employee’s employment income ...

3. Non-resident employee’s employment income above 2100 euros per month

Employee with an employment contract, wages or salaries or other similar payment above 2100 euros (payment type 120).

Olle is a Swedish tax resident receiving remuneration for work according to an employment contract in the gross amount of 2500 euros per month. He is not of Estonian retirement age.
In this example, when calculating income tax to be withheld on payment, it is not allowed to apply the basic exemption (regardless of the total annual income of a non-resident and regardless of the country in which the recipient is a resident for tax purposes).

With a payment above 2100 euros, the basic exemption cannot be applied. Although the employee has submitted an application for applying the basic exemption in the amount of 500 euros per month, the employer may apply the basic exemption only to the amount permitted by law.
Mandatory funded pension contributions (II pillar) cannot be withheld from payments made to a non-resident recipient. 

TAX CALCULATION
  • Social tax 2500 x 33% = 825 euros
  • Withheld unemployment insurance premium 2500 x 1.6% = 40 euros
  • Employer´s unemployment insurance premium 2500 x 0.8% = 20 euros
  • Withheld income tax (2500–40) x 20% =  492 euros

Net payment of 1968 euros (2500–40–492) is made to Olle´s bank account.

DECLARATION IN ANNEX 2 OF FORM TSD

Payment recipient

Payment

A1/E101 country

personal ID code in Estonia

name or first name and surname

country

type

amount

2000

2010

2020

2030

2040

2060

98765432100

Olle

SE

120

2500

Amount subject to social tax

Social tax

Payment subject to unemployment insurance premium

Unemployment insurance premium

Unemployment insurance premium withheld

2070

2110

2120

2130

2140

2500

825

2500

40

20

Amount subject to income tax

Tax exemption

Income tax rate

Amount of income tax withheld

type

amount

2150

2154

2155

2160

2170

2500

20

492

EXCEPTIONS IN TAX CALCULATION

  • If an employee is of the Estonian retirement age, unemployment insurance premium (code 2130) is not withheld at the rate of 1.6 % from payment (20 euros in the example).

  • If form A1 “Certificate concerning the social security legislation which applies to the holder” has been issued to an employee from a foreign country (country of the European Economic Area (Member State of the EU, Iceland, Liechtenstein, Norway) or Switzerland; Sweden in the example) the country has to be indicated in code 2060 and Estonian social tax is not calculated in code 2110 (825 euros in the example) nor unemployment insurance premiums in code 2130 (40 euros in the example) nor in code 2140 (20 euros in the example). 
    If work was done in Estonia, the payment type has to be 121.

Last updated: 09.03.2022

Last updated: 19.08.2022

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